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Hedonic coalition formation games: A new stability notion

  • Karakaya, Mehmet
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    This paper studies hedonic coalition formation games where each player's preferences rely only upon the members of her coalition. A new stability notion under free exit-free entry membership rights, referred to as strong Nash stability, is introduced which is stronger than both core and Nash stabilities studied earlier in the literature. Strong Nash stability has an analogue in non-cooperative games and it is the strongest stability notion appropriate to the context of hedonic coalition formation games. The weak top-choice property is introduced and shown to be sufficient for the existence of a strongly Nash stable partition. It is also shown that descending separable preferences guarantee the existence of a strongly Nash stable partition. Strong Nash stability under different membership rights is also studied.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0165489611000187
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    Article provided by Elsevier in its journal Mathematical Social Sciences.

    Volume (Year): 61 (2011)
    Issue (Month): 3 (May)
    Pages: 157-165

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    Handle: RePEc:eee:matsoc:v:61:y:2011:i:3:p:157-165
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505565

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    1. Suryapratim Banerjee & Hideo Konishi & Tayfun Sonmez, 1999. "Core in a Simple Coalition Formation Game," Boston College Working Papers in Economics 449, Boston College Department of Economics.
    2. John Conley & Hideo Konishi, 2001. "Migration-proof Tiebout equilibrium:Existence and asymptotic efficiency," Economics Bulletin, AccessEcon, vol. 28(1), pages A0.
    3. Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
    4. Iehle, Vincent, 2007. "The core-partition of a hedonic game," Mathematical Social Sciences, Elsevier, vol. 54(2), pages 176-185, September.
    5. Szilvia Papai, 2000. "Unique Stability in Simple Coalition Formation Games," Econometric Society World Congress 2000 Contributed Papers 1537, Econometric Society.
    6. José Alcalde & Antonio Romero-Medina, 2006. "Coalition Formation and Stability," Social Choice and Welfare, Springer, vol. 27(2), pages 365-375, October.
    7. Dimitrov, D.A. & Borm, P.E.M. & Hendrickx, R.L.P. & Sung, S.C., 2004. "Simple Priorities and Core Stability in Hedonic Games," Discussion Paper 2004-5, Tilburg University, Center for Economic Research.
    8. Dreze, J H & Greenberg, J, 1980. "Hedonic Coalitions: Optimality and Stability," Econometrica, Econometric Society, vol. 48(4), pages 987-1003, May.
    9. José Alcalde & Pablo Revilla, 2003. "Researching with Whom? Stability and Manipulation," Economic Working Papers at Centro de Estudios Andaluces E2003/35, Centro de Estudios Andaluces.
    10. Shao Sung & Dinko Dimitrov, 2007. "On Myopic Stability Concepts for Hedonic Games," Theory and Decision, Springer, vol. 62(1), pages 31-45, February.
    11. Burani, Nadia & Zwicker, William S., 2003. "Coalition formation games with separable preferences," Mathematical Social Sciences, Elsevier, vol. 45(1), pages 27-52, February.
    12. Ballester, Coralio, 2004. "NP-completeness in hedonic games," Games and Economic Behavior, Elsevier, vol. 49(1), pages 1-30, October.
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